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Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor hours . The predetermined overhead allocated during the year is $270,000. The
Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor hours. The predetermined overhead allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:
Actual direct materials cost | $812,500 |
Actual direct labor cost | $180,000 |
Actual overhead costs incurred: | $264,000 |
Total direct labor hours | 5,520 hours |
What is the predetermined overhead allocation rate applied by Doric?
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